Kenya higher education funding model transition

Universities in Kenya are experiencing uncertainty as they await government guidelines for a new funding model intended for the 2026/2027 academic year. Under the proposed Tertiary Education, Placement and Funding Bill, 2026, the state plans to transition toward a market-based financing model, potentially merging the Higher Education Loans Board (HELB), the Universities Fund, and the TVET Fund into a single Tertiary Education Funding Authority.

At Machakos University, over 3,000 first-year students have begun registration despite the absence of official fee structures. While the institution is currently only collecting payments for items like hostels, students and parents have expressed concerns regarding future financial stability and existing disbursement delays from HELB.

As the transition progresses, the scarcity of public funds has left many families unable to meet immediate costs. Although President William Ruto previously announced a move toward ‘100 per cent universal government funding’, the shift to a system where students receive loans repayable after graduation has created significant financial pressure for those awaiting new official directions.